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Capital flight exists in China because of investor fears that the Yuan is worth significantly less than it's current rate of ~7 Yuan per dollar. Consider that t
by onepointsixC 7y ago
Capital flight exists in China because of investor fears that the Yuan is worth significantly less than it's current rate of ~7 Yuan per dollar. Consider that the Chinese Yuan m2 currency supply figures are double that of the US Dollar. So the Chinese have printed twice as many Yuan in value as there are USD. One of those currencies is the global reserve currency used in nearly all FOREX trading. The other is only used in China. I'd say they probably have a point.